TUI has extended the suspension of holidays for UK customers to mainland Spain until August 17, and the Balearic Islands and Canary Islands until August 10.
The firm said it will instead add more flights to Greece and Turkey "following the overwhelming demand from customers to still get away this summer".
The UK's biggest tour operator made the decision after the Foreign Office advised against all non-essential travel to mainland Spain and the islands.
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A Foreign Office spokesperson said: “We have considered the overall situation for British nationals travelling to and from the Balearic and Canary Islands, including the impact of the requirement to self-isolate on return to the UK, and concluded that we should advise British nationals against all non-essential travel to the whole of Spain.”
It has made the decision based on the current assessment of COVID-19 risks in the country.
The FCO website says: "This advice is based on evidence of increases in cases of COVID-19 in several regions, but particularly in Aragon, Navarra and Catalonia (which include the cities of Zaragoza, Pamplona and Barcelona).
The FCO is not advising those already travelling in Spain to leave at this time.
It adds: "Travellers should follow the advice of the local authorities on how best to protect themselves and others, including any measures that they bring in to control the virus."
TUI issued a blistering statement on Saturday night criticising the government's decision to remove Spain from the 'air bridge' list.
Another tour operator, Jet2, has started evacuating holidaymakers from Spain.
They have cancelled customers' flights home and told them they need to rebook a new flight back to the UK before August 4.
